- Homepage >>
- Press Releases >>
- May 2020 >> ANCOM proposes lower fixed call termination rates
ANCOM proposes lower fixed call termination rates
19.05.2020
”We have launched for public consultation draft measures to reduce the maximum fixed call termination rate by approximately 30%, to 0.097 eurocents/minute, from 1 August 2020. We thus continue the Authority's efforts to foster a competitive telecom market in Romania, with attractive and convenient offers for the users”, declared Sorin GRINDEANU, President of ANCOM.
Maximum fixed call termination rate
According to the draft measures proposed by ANCOM, starting from 1 August 2020 fixed telephony operators designated by the Authority as having significant market power - among which Telekom, RCS & RDS, Orange or Vodafone – will cap their tariffs at 0.097 eurocents/minute for domestic calls, calls initiated from the European Economic Area (EEA), and calls initiated from networks outside the EEA, if the international agreements in force do not allow a different charging regime.
Tariff calculation
The current maximum fixed call termination rate is 0.14 eurocents/minute and was set by ANCOM as of 1 April 2014, based on a pure LRIC costing model established with the aims of promoting competition, maximizing consumer benefits and stimulating efficient investment in infrastructure, in accordance with the harmonized methodology provided in Recommendation 2009/396/EC.
ANCOM’s proposed cutting of this tariff down to 0.097 eurocents/minute has been determined based on the updating of several parameters in the previously used cost calculation model and of the cost of capital.
Regulatory framework
The regulatory measures launched for public consultation by ANCOM complement the previous measures for identifying, analysing and regulating the fixed call termination markets established in 2017. The Authority regularly undertakes reviews of the relevant wholesale markets according to the national and European legislation in force, in order to ensure the functioning of the retail telephony markets under competitive conditions, thus protecting the end-users’ interest.
Fixed telephony market
According to the latest statistical data collected by ANCOM, the Romanians used less fixed telephony in 2019, these services witnessing downward trends both in the number of access lines (-7.7%, reaching 3.38 million), and at traffic level (-16.5%, reaching 1.9 billion minutes). These dynamics drove to an average fixed call traffic volume of only 8 minutes/month in 2019, down 17% compared to 2018.
By number of subscribers at end-2019, Telekom Group had a market share of 40%, RCS&RDS 35%, Vodafone Group 23%, the rest of the providers totalling 2%.
Public consultation process
The measures proposed by the National Authority for Management and Regulation in Communications on setting the maximum fixed call termination rate are available, in Romanian, here. The interested parties are invited to submit their comments and suggestions, by 18 June 2020, at the ANCOM headquarters (2 Delea Noua Street, Bucharest 3), by fax to +40 372 845 402 or by e-mail to consultare@ancom.org.ro.
top